According to CoinMeta, as of the week ending October 20th, the net short positions in euros held by leveraged funds increased by 1,305 contracts, reaching 94,100 contracts, which is the highest level since March 2020, corresponding to a bearish bet of approximately 11.8 billion euros. Political instability in France, debt pressures, and intensifying protest activities have heightened market concerns, weighing on the euro. Investors are also worried about a slowdown in European economic growth, limited room for interest rate hikes by the European Central Bank (ECB), and the potential for a further widening of the interest rate gap between Europe and the United States. The euro weakened against the US dollar again this week, falling by a cumulative 0.4%.